Czech infrastructure operator CETIN has received from the European Commission a so-called statement of objections over the sharing of mobile networks between CETIN and T-Mobile Czech Republic. CETIN said it does not agree that the sharing of mobile networks violates EU competition law.
CETIN operates the mobile infrastructure of O2 Czech Republic, which has shared networks with T-Mobile since 2011. The cooperation between the two largest mobile operators in Czechia has been increasing in scope and currently covers all mobile technologies (2G, 3G and 4G) and the entire territory of Czechia with the exception of Prague and Brno, thus amounting to around 85 percent of the population.
The Commission said in a statement that network sharing should result in benefits for customers, such as faster roll-out, lower costs and and improved coverage in rural areas. In the present case, it's concerned that the network sharing agreement reduces competition in the more densely populated areas of the country.
The investigation was opened in 2016 and the Commission assessed a number of specific circumstances, it said. These include the highly concentrated Czech communications market, with only three mobile network operators, and the fast that O2 and T-Mobile are the two largest operators, with their networks serving approximately three quarters of subscribers.
The preliminary conclusion was that the network sharing agreement "restricts competition and thereby harms innovation in breach of EU antitrust rules". Rather than leading to benefits for customers, the network sharing agreement "is likely to remove the incentives for the two mobile operators to improve their networks and services to the benefit of users," the Commission said in a statement.
According to CETIN, the statement of objections doesn't provide any new or substantiated arguments that EU law could be infringed by the agreement. CETIN plans to continue defending its position and expects to refute any concerns of the European Commission.
